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Limited Liability Partnership


Limited Liability Partnership (LLP) is becoming famous amongst the self-funded groups of partners. It enjoys the benefits of limited liability to the partners with less compliance burden. It is a combination of both a Partnership firm and a Private Limited company.
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Overview

Limited Liability Partnership entity is a separate legal entity. Just like Private Limited Company. it can sue and can be sued in its own name. The liability of each partner in an LLP is limited to the contribution made by the partner.

The cost of forming and compliance of a Limited Liability Partnership is comparatively low, as there are less compliance and regulations to the LLP. There is no such need for minimum capital contribution in the LLP.

The minimum number of partners required to incorporate an LLP is 2. But there is no upper limit on the maximum limits of the partners in the Limited Liability Partnership entity. Among the partners of LLP, there should be minimum of 2 designated partners. And at least one of them should be a resident Indian. The responsibilities of the designated partners are governed by the LLP Agreement.

Designated partners are responsible for compliance with all provisions of the LLP act 2008.



Benefits of Limited Liability Partnership

Below are the list of advantages and benefits of forming a Limited Liability Partnership

Limited Liability

Just like Private Limited Company, LLP protects its partner's personal assets by offering Limited Liability to its partners. No partner is responsible for any other partner's misbehaves or misconduct.

Easy to Form

Forming an LLP is an easy process as compared to other registered entities, it takes less time to form an LLP than a company.

Perpetual Succession

The Life of the Limited Liability Partnership is not affected by the death of or retirement of a partner. The LLP continues till the partners apply for closure of the LLP.

Taxation

LLP’s are taxed flat 30% on the net profit. But, it does not have a dividend distribution tax. It is exempted from Dividend distribution tax and Minimum alternative tax.

No Audits & Filings

LLP doesn’t have to do statutory audit unless the turnover of the LLP is more than 40 Lacs, also LLP enjoys less ROC compliance burden.

Transfer of Ownership

There are no restrictions to join or exit from an LLP as a partner. It is an easy process to add a partner and to remove a partner.

Checklist/Requirements

Basic Requirement

• At least 2 Designated Partners are required – There is No limit for Maximum partners.
• At least 1 Designated Partner should be resident of India
• An address which acts as a registered address of the company

Documents requirement

For Each Partner Of LLP
1. PAN card* (Mandatory for Indians & others if held)
2. Passport* (for NRI, Foreigners, and Indians if held)
3. Address proof (any 1 of) (Not more than 2 months old)
  a. Bank Statement
  b. Phone Bill
  c. Mobile Bill
  d. Electricity Bill

(Note - For NRI & Foreigners Documents issued by foreign authorities or signed outside India must be notarized & apostilled)

For Registered Address
  1. NOC from Owner*
  2. Rent Agreement*
  3. Utility Bill*

How to Register/Process

Once the founders of the LLP finalize the name of the LLP. Then the process of incorporation of Limited Liability Partnership starts as below (Note: Name of the LLP can be different from the brand name; it is not mandatory to have the same brand name as an LLP name)

Step 1: Application for DSC (Digital signature certificate) and DIN (Directors Identification Number) for the partners

Step 2: Apply for the Name reservation

Step 3: Drafting & filing LLP agreement to register the Limited Liability Partnership

Step 4: Apply for the PAN and TAN of the LLP

Step 5: Issue Certificate of Incorporation along with PAN and TAN of the LLP

Key Deliverables

a. DSC of directors and shareholders

b. PAN and TAN number

c. Certificate of incorporation

d. LLP Agreement

Limited liability partnership incorporation

Why Choose Us

Entrepreneur Friendly

We make the process so easy and fast that you will not even feel the headache of all the paperwork, and our professionals will provide you all the promised deliverable within a given span of time.

Experienced Professionals

All our professionals are qualified and specialized in that particular work. Making sure no mistakes are done at the time of filings with the authorities so that company won’t have to pay any penalties due to mistakes.

One Stop for All Your Requirements

We support you throughout the journey of your business, from the incorporation, Accounting and taxation support, Secretarial compliance support, and Legal support.

Cost-Effective

We believe that cost plays a vital role in any company’s growth stage, that’s why we do not surprise our clients with hidden charges, you pay what you see in the initial proposal.


Frequently Asked Questions


The approved name of LLP shall be valid for a period of 3 months (90 days) from the date of approval.
No, the name of an LLP cannot end with words such as ‘Limited’ or ‘Pvt. Limited’. Name of an LLP shall end with either ‘Limited Liability Partnership’ or ‘LLP’. The word ‘limited’ shall be allowed in name only within ‘Limited Liability Partnership’.
Every partner shall inform the LLP of any change in his name or address within a period of fifteen days of such change. The LLP, in turn, would be under obligation to file such details with the Registrar within thirty days of such change.
E-form 3 (for change in LLP agreement and e-form 4 are required to be filed for appointment of new and resignation of existing partners within thirty days of such cessation or appointment without additional fee and with additional fee thereafter.
Yes, any LLP can close its business in India by adopting either of the following two ways: 1. Declaring the LLP as Defunct 2. Winding up of LLP.
LLP is required to file LLP Form 8 (Statement of Account & Solvency) and LLP Form 11 (Annual Return) annually. The ‘Annual Return’ is required to be filed within 60 days of close of the financial year and ‘Statement of Accounts & Solvency’ shall be filed within 30 days from the end of six months of the financial year to which it relates. Every LLP has to maintain uniform financial year ending on 31st March of a year.
Yes, pursuant to the provisions of the Limited Liability Partnership Act, 2008, it is required to have one Resident Designated Partner in an LLP.
No, LLPs cannot be incorporated using SPICe forms.
Like physical documents being signed manually, electronic documents(such as e-forms) are required to be signed digitally using a Digital Signature Certificate (DSC).